Operational discipline is evidenced by a peak free cash flow margin of 19.1% in 2025Q3, though working capital requirements occasionally create volatility, such as the $1.8M outflow observed in 2025Q4.
| Cash from Operations | 11.17M | 10.66M | 7.52M | 4.41M | 2.04M | 2.96M | 3.91M |
| Operating CF Margin % | - | 19.59% | 15.35% | 10.7% | 6.41% | 11.09% | 13.03% |
| Operating CF Growth % | 181.44% | 41.72% | 70.74% | 115.72% | -31.01% | -24.22% | - |
| Net Income | 9.21M | 8.45M | 7.64M | 3.49M | 1.8M | 1.58M | 2.31M |
| Depreciation & Amortization | 1.14M | 1.09M | 973K | 850K | 725K | 542K | 489K |
| Stock-Based Compensation | 1.21M | 1.08M | 636K | 2.42M | 458K | 292K | 145K |
| Deferred Taxes | 1.3M | 1.48M | 212K | -784K | 1.14M | 0 | 491K |
| Other Non-Cash Items | 167K | 27K | 0 | 0 | 0 | 705K | 0 |
| Working Capital Changes | -1.86M | -1.46M | -1.94M | -1.57M | -2.08M | -161K | 471K |
| Change in Receivables | -1.36M | 186K | -2.04M | 395K | -1.2M | -47K | 215K |
| Change in Inventory | -985K | -164K | -625K | -1.37M | -2.3M | -116K | 718K |
| Change in Payables | 503K | 0 | 894K | -691K | 1.85M | 0 | -438K |
| Cash from Investing | -2.42M | -2.55M | -1.9M | -1.28M | -936K | -1.1M | -407K |
| Capital Expenditures | -2.42M | -2.55M | -1.9M | -1.28M | -936K | -1.1M | -407K |
| CapEx % of Revenue | 4.29% | 4.69% | 3.87% | 3.11% | 2.94% | 4.12% | 1.36% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 29.54M | 142K | 3.1M | -137K | -2.81M | -1.68M | -3.91M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -1.68M | -3.32M |
| Equity Issued (Net) | 29.72M | 532K | 0 | -137K | -10K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -137K | -10K | 0 | 0 |
| Other Financing | -179K | -390K | 3.1M | 0 | -2.81M | 1K | -588K |
| Net Change in Cash | 38.3M | 8.25M | 8.73M | 2.99M | -1.71M | 179K | -412K |
| Free Cash Flow | 8.75M | 8.11M | 5.62M | 3.12M | 1.11M | 1.86M | 3.5M |
| FCF Margin % | 15.53% | 14.9% | 11.47% | 7.59% | 3.47% | 6.97% | 11.67% |
| FCF Growth % | 66.09% | 44.19% | 79.99% | 182.46% | -40.57% | -46.81% | - |
| FCF per Share | 2.45 | 2.51 | 1.95 | 1.14 | 0.41 | 0.70 | 0.65 |
| FCF Conversion (FCF/Net Income) | 0.95x | 1.26x | 0.98x | 1.26x | 1.14x | 1.87x | 1.69x |
| Interest Paid | 7K | 0 | 8K | 6K | 9K | 0 | 0 |
| Taxes Paid | 997K | 0 | 2.39M | 1.63M | 36K | 0 | 0 |
Defense budget appropriation timing
According to quarterly financial statements, MPTI's operating cash flow to net income ratio has fluctuated, notably reaching 0.89 in 2026Q1, which suggests that while earnings are generally supported by cash generation, the timing of working capital requirements can occasionally create a disconnect between accounting profit and liquidity.
The variability in the OCF/NI ratio indicates that MPTI's accrual-based net income is sensitive to the timing of project milestones and associated cash collections. Investors should monitor whether this conversion trend stabilizes as the company matures as a standalone entity, as consistent cash conversion is vital for a firm with high-reliability manufacturing requirements.
As reported in recent filings, MPTI has maintained positive free cash flow margins, peaking at 19.1% in 2025Q3, which indicates that the company's specialized defense-focused business model is capable of generating significant surplus cash after accounting for necessary capital expenditures to support its technical infrastructure.
The consistent ability to generate free cash flow suggests that MPTI is not overly burdened by maintenance capital requirements, allowing for potential reinvestment or strategic flexibility. This trajectory appears favorable, though the lumpiness of defense contracts may cause periodic fluctuations in FCF margins that warrant careful observation.
Based on the provided data, MPTI's capital expenditure as a percentage of revenue has remained relatively contained, averaging between 1% and 7% over the last ten quarters, which suggests that the company is effectively managing its asset base without requiring excessive reinvestment to maintain its technical competitive advantage.
The moderate capital intensity implies that MPTI's manufacturing processes are well-optimized for its low-volume, high-complexity output. This efficiency allows the company to preserve cash flow, reinforcing its strong balance sheet position while continuing to meet the rigorous qualification standards required by its defense prime contractor customers.
Analysis of recent financial reports reveals that working capital changes have frequently acted as a drag on operating cash flow, with a notable $1.8M outflow in 2025Q4, suggesting that inventory build-ups or delayed receivables are common features of the company's project-based defense electronics business model.
The periodic swings in working capital appear to be a function of the long-cycle nature of defense programs, where inventory must be procured well in advance of final revenue recognition. This dynamic may lead to temporary cash flow pressure, requiring management to maintain the current high cash reserves to ensure operational continuity.
Quick answers to the most common questions about buying MPTI stock.
M-tron Industries, Inc. (MPTI) generated $10.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
M-tron Industries, Inc. (MPTI) generated $8.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
M-tron Industries, Inc. (MPTI) spent $2.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.